0. THE TRES AMIGAS SUPERSTATION
UNITING THE NATION’S ELECTRIC POWER GRID
THE TRES AMIGAS SUPERSTATION
Transmission Summit 2013
February 28, 2013

1. Project Value Creation
Connects the three US asynchronous power grids through a DC hub that can regulate the direction and level of power flows between the grids
Provides economic incentives to further drive the growth of the nation’s renewable resources
Optimizes the value of existing and planned AC and DC/ HTS infrastructure
Provides open-access and cost-effective transmission services consistent with NERC standards and regional reliability requirements
Provides voltage support, capacity firming and other value-added and ancillary services
By connecting the three US synchronous power grids through a DC hub that can regulate the direction and level of power flows between the grids, TA will be able to move power from a wide variety of sources to a significant number of markets. This is much like how the Henry Hub works for natural gas.
By increasing available market outlets, TA will allow renewables generators to maximize the value of their assets, which in turn will spur further deployment, which should result in economies of scale, technological advances and thus drive the growth of the nation’s renewable resources.
In the same vein, TA’s new connections should drive up the value of existing and proposed infrastructure, by allowing that infrastructure to be used to reach more sources and sinks for power.
Transmission should see higher load factors,
existing generation should be able to reach higher value markets,
reserve sharing will be facilitated, and
other ways of maximizing asset values will also be available to customers of TA.
TA will provide open-access and cost-effective transmission services under a FERC tariff with negotiated rate
TA will enhance reliability in the region by providing voltage support, capacity firming and other value-added and ancillary services

2. Scope of the Business
The Tres Amigas Transmission Superstation can be mapped against the NIST Smart Grid Conceptual Model to illustrate the scope of the Tres Amigas business. 2
Transmission: The fundamental offering of Tres Amigas is transmission service. From this base it is possible to offer other services, both to support stable system operations, in the interconnected grids, and to facilitate commercial transactions.
Operations: Tres Amigas Operations will serve as the hub for both the transmission operator and market/exchange services. It will ensure reliability and interchange coordination, and it will carry out a number of core market functions necessary to support robust markets 1 1 2
NIST
National Institute of Standards and Technology's web site.
Founded in 1901 and now part of the U.S. Department of Commerce, NIST is one of the nation's oldest physical science laboratories. Congress established the agency to remove a major handicap to U.S. industrial competitiveness at the time—a second-rate measurement infrastructure that lagged behind the capabilities of England, Germany, and other economic rivals. Today, NIST measurements support the smallest of technologies—nanoscale devices so tiny that tens of thousands can fit on the end of a single human hair—to the largest and most complex of human-made creations, from earthquake-resistant skyscrapers to wide-body jetliners to global communication networks. We invite you to explore our web site to learn about our current projects, to find out how you can work with us, or to make use of our products and services.
Source: The National Institute of Standards and Technology (NIST) Smart Grid Conceptual Model

3. The Location: Regional Renewable Resource Potential
Source: NREL

4. From the 2010 Transmission Summit in Sweetwater
This map superimposes 3 proposed HVDC projects: Santa Fe 500 kV HVDC line from Clovis NM to markets west in AZ, NV and CA, the Tres Amigas Super Substation outside Clovis NM, and the Central and Eastern Clean Line dual 500 kV HVDC lines from western SPP to TVA. These HVDC projects are only viable with robust EHV networks.
These proposed HVDC projects only complicate the difficult task to coordinate plans and line routes as noted on slide 3.
w/ HVDC Proposals

5. Site Location in New Mexico
TA is located in the heart of this resource, and near the boundaries, so when constructed, these boundaries will virtually disappear,
For instance, power that is produced in the evening in west Texas can be used during peak periods in LA.

6. First Phase Scope of Construction
The Phase I facility will consist of a “folded design” Voltage Source Converter which will transfer energy between the Eastern Grid and The Western Grid.

7. Alstom Grid HVDC MaxSine Technology
Voltage Sourced Converter (VSC) technology
Modular multi-level converter design
Control of real and reactive power flow into AC grids
Harmonic free output voltage
Ideal for use on weak AC grids
VSC HVDC scheme
+ V
- V
= chain link module
The “module contains the heart of the VSC which is the Insulated Gate Bi-polar Transistor.
It also contains a large capacitor with a cooling system.
The module will be assembled into sub-modules of eight in Stafford UK and shipped to the US for final installation.

8. Folded Back-to-Back Convertor Layout
DC Bus Connections
Provides for AC and DC HTS bus
interconnections
AC Bus Connections

9. China: Current HVDC National Grid Plan

10. Europe: Extended Grid Plan
From Iceland (Northwest) to Israel (Southeast) = 3,200 mi
Concept of grid is 25,000 miles of line
Solar Power
Wind Power
Geothermal
Hydro
Biomass
Connections already in place or planned
Vision of ABB and DLR
The new high-voltage network would range from the Sahara to the polar cap. The concept calls for main lines that are 40,000 kilometers long. And parts of it already exist.

11. Friends of the Super Grid Quote:
“The full significance of a switchable HVDC innovation has not yet been appreciated by policy makers or by the business community. It is clear that a network incorporating a HVDC grid with the redundancy and reliability of current AC grids is now a reality and that the limits of what is technologically possible have been greatly expanded.”
“HVDC technology will open markets, strengthen security of supply and create another global opportunity for European companies to export sustainable energy technology. The technology underpinning the Supergrid will give competitive advantage to the companies involved with its specification and design. This type of integrated AC/DC grid will be a template for what will be needed in other global markets including the US and China.”

12. Design
The artist’s rendering depicts the 5 GW stage of development with three 750 MW VSC’s and three 920 MW LCC’s, each with the “folded design” allowing for access to the HVDC side of the valve halls.
The proposed battery system is shown on the east side of the facility and will be used for regulation, firming, and shaping.
The graphic clearly shows both utility access and renewable energy market access to and from all three grids.

13. Phase 1 & 2 Transmission Lines

14. Products & Services - How Will Customers Use TA Services?

15. Products & Services - Operations Services
Tres Amigas Operations can be mapped against a generic electricity market structure, illustrating TA Operations core functions – system operations, spot market operations and information services. Tres Amigas will most likely engage an established clearinghouse to support forward trading and clearing.

16. Products & Services - Transmission
Transmission service will be sold in blocks ranging from one to 20 years in duration, as well as on a seasonal, monthly, weekly, daily and hourly basis.
20 years
Annual
Monthly
Daily
Hourly
Anchor Tenant Agreements
Open Season
Spot Sales
(via Portal)
AT Auction
Annual Auction
Up to 50% of firm capacity
remaining available firm capacity after Anchor Tenant Agreements
remaining available firm capacity after Anchor Tennant Agreements and Anchor Tennant Auction
Any available long-term firm capacity
Additional short-term firm capacity
All non-firm capacity
Secondary trading of previously purchased capacity
FIRM SALES
NON-FIRM SALES
Three distinct mechanisms will be used to sell transmission service:
Negotiated, long-term ‘Anchor Tenant Agreements’
Competitive ‘open seasons’, mostly for annual service, but also including an initial ‘Anchor Tenant Auction’ for terms up to 20 years.
Web-based real-time portal, for non-firm and shorter-term firm capacity, with a duration less than one year (e.g. monthly, weekly, daily, hourly).
Additionally, the real-time portal will facilitate a secondary market for Tres Amigas customers to trade transmission capacity purchased previously.

17. Development of the Price Coupling of Regions (PCR) Initiative since 2009
Markets initially included in PCR TWh
Markets which showed interest to join
Markets that could join next as part of an agreed European roadmap
2/3 of the European power consumption is today covered by 5 PXs only
* Source: UCTE 2007 power consumption data

18. Integrated Clearing ERCOT Integrated Clearing SPP Clearing WECC
Reports

19. Funding – Tres Amigas Merchant Transmission
Unlike traditional transmission facilities, merchant transmission project owners assume all market risk. Tres Amigas has been successful in receiving significant capital through investors and private placements.
Phase II – III
1.5B
Phase I
500 M
2015
2013
Phase II-III: construction & operations, Texas node, additional HVDC converters, facilities, and business infrastructure
Preconstruction
12M
Phase I: construction & operations, East/West transmission node, including HVDC converters, buildings and business infrastructure, EMS Operations
2012
Startup 8M
Preconstruction: detailed engineering, vendor selection/contracts, product development, additional filings and detailed business plans.
2010
Startup: research, regulatory and local filings, ROW, preliminary engineering, environmental, economics and business plan.
Concept 2M
2008

20. Tres Amigas SuperStation…. Uniting the Electric Grid